“More than a fifth of Florida’s students loans — 21.5 percent — are delinquent or in default,” writes Donna Gehrke-White of the South Florida Sun-Sentinel, based on data released by WalletHub.com, a personal finance website.
Nationwide, about 11% of loans – or half that amount – are late or unpaid, says Gehrke-White.
What’s behind Florida’s significantly higher default rates?
Many graduates are still stuck in entry-level jobs stemming from the 2008 recession. In addition, Florida’s lower wages and higher cost of living limit young workers’ ability to pay back loans.
The Takeaway: Be careful how much student debt you take on in the first place, and keep it in proportion to your expected earnings. One rule of thumb: don’t borrow more than what you expect to earn the first year out of college.